Università Roma Tre

Industrial development and innovation are the essential forces that determine growth, development and structural change. In particular, innovation plays an essential role in the developing world and its role will be increasingly important. This course will give students the tools and analytical methods to think systematically about industrial development and innovation in developing countries, and provide them with a practical understanding of these phenomena.

Part one of the course lays the theoretical foundations of industrial development, including traditional, as well as, new and unorthodox approaches, with a focus on the theory of the firm and of innovation in emerging countries.
Part two of the course explores in detail the tools and mechanisms frequently implemented in industrial and innovation policies and programs, and analyzes the approaches followed by some governments and international organizations using concrete empirical examples from policies and projects implemented.

COMPULSORY READINGS
Selected Chapters from:
Szirmai A. (2015) Socio-Economic Development: Cambridge University Press, 2nd Ed.., chapters 8 and 9.
Crespi G., Fernandez-Arias E. and Stein E. (Eds.), 2014, Rethinking Productive Development: Sound Policies and Institutions for Productive Transformation, Development in the Americas, London: Palgrave for Inter-American Development Bank. Chapters 1, 2 and 3.
Cirera X. and Maloney W.F., 2017, The Innovation Paradox: Developing Country Capabilities and the Unrealized Promise of Technological Catch-Up, Washington DC: The World Bank, https://openknowledge.worldbank.org/handle/10986/28341 chapters 1, 2, and 4.
Articles:
1. Bell M.R. and Pavitt K., 1993, ‘Technological Accumulation and Industrial Growth: Contrasts between Developed and Developing Countries’, Industrial and Corporate Change, Vol.2 No.2.
2. Casaburi G., Maffioli A., Pietrobelli C., 2014, Policies to Promote Coordination among Interlinked Firms, in Crespi et al., Rethinking Industrial Policy: Sound Policies and Institutions for Productive Transformation, Palgrave, chapter 7.
3. Fagerberg J., 2006, “Innovation. A Guide to the Literature”, in J.Fagerberg and D.Mowery (Eds.) The Oxford Handbook of Innovation, Oxford: Oxford University Press.
4. Gereffi G., Humphrey J., Sturgeon T., 2005, “The governance of global value chains”, Review of International Political Economy, 12:1, 78-104.
5. Giuliani E., Pietrobelli C. and Rabellotti R. (2005) “Upgrading in Global Value Chains: Lessons from Latin American Clusters”, World Development, Vol.33(4), pp. 549–73.
6. Hallward-Driemeier, M. and Pritchett L., 2015. "How Business Is Done in the Developing World: Deals versus Rules." Journal of Economic Perspectives, 29(3): 121-40. https://www.aeaweb.org/articles.php?doi=10.1257/jep.29.3.121
7. Hausmann R. and Rodrik D. (2006) “Doomed to Choose: Industrial Policy as a Predicament”, Harvard Kennedy School Working Paper. http://www.hks.harvard.edu/index.php/content/download/69495/1250790/version/1/file/hausmann_doomed_0609.pdf
8. Hausmann R. and Rodrik D., (2003), “Economic Development as Self Discovery,” Journal of Development Economics, Vol.72, Issue 2, pages 603-33, December (also NBER Working Paper No. 8952).
9. Lall S. and Pietrobelli C., 2005, “National Technology Systems in Sub-Saharan Africa”, International Journal of Technology and Globalization, KSG, Harvard, Vol.1 No.3-4, 2005.
10. Lall S., 1992, "Technological Capabilities and Industrialization", World Development, Vol.20 No.2
11. Lin J. and Chang H.J., 2009, “Should Industrial Policy in Developing Countries Conform to Comparative Advantage or Defy it? A Debate Between Justin Lin and Ha-Joon Chang”, Development Policy Review, 2009, 27 (5): 483-502
12. Lundvall B‐Å. (2007) “National Innovation Systems—Analytical Concept and Development Tool”, Industry and Innovation, 14:1, 95-119, DOI: 10.1080/13662710601130863
13. Maffioli A., Pietrobelli C. and Stucchi R., 2016, The Impact Evaluation of Cluster Development Programs, Washington D.C.: Inter-American Development Bank, http://dx.doi.org/10.18235/0000335 Chapter 1.
14. McMillan, M., Rodrik, D., Verduzco-Gallo, I., 2014, “Globalization, Structural Change, and Productivity Growth, with an Update on Africa”. World Development 63: 11-32, doi: 10.1016/j.worlddev.2013.10.012
15. Nelson R.R., 2008, “Economic Development from the Perspective of Evolutionary Theory”, Oxford Development Studies Vo.36 No.1 March, pp.9-22
16. Pietrobelli C., 1997, ‘On the Theory of Technological Capabilities and Developing Countries’ Dynamic Comparative Advantage in Manufactures’, Rivista Internazionale di Scienze Economiche e Commerciali, Vol.XLIV, No. 2, June.
17. Pietrobelli, C. & Staritz, C., 2017, “Upgrading, Interactive Learning, and Innovation Systems in Value Chain Interventions”, European Journal of Development Research, https://doi.org/10.1057/s41287-017-0112-5
18. Rodrik D., 2013, “Unconditional Convergence in Manufacturing”, Quarterly Journal of Economics, pp.165-204, doi:10.1093/qje/qjs047

OPTIONAL SUPPLEMENTARY READINGS
 Chatterji A., Glaeser E.L., Kerr W.K., 2013, “Clusters of Entrepreneurship and Innovation”, NBER Working Paper 19013 http://www.nber.org/papers/w19013
 EIU, “Innovation Clusters: Understanding life cycles”, The Economist Intelligence Unit, London http://destinationinnovation.economist.com/category/cluster-effects/
 Fernández-Arias E., Sabel C., Stein E., Trejos A., 2017, “Two to Tango: Public-Private Collaboration for Productive Development Policies”, IDB Working Paper IDB-WP-855, Washington D.C.: The Inter-American Development Bank. https://publications.iadb.org/handle/11319/8697
 Fu X., Pietrobelli C., Soete L., 2011, “The Role of Foreign Technology and Indigenous Innovation in the Emerging Economies: Technological Change and Catching-up”, World Development Vol. 39, No. 7, pp. 1204–1212
 Humphrey J. and Schmitz H. (2002) “How does insertion in global value chains affect upgrading industrial clusters?”, Regional Studies, Vol. 36, No.9.
 Podcast on Structural Change, Interview to Dani Rodrik, IMF Podcast, http://www.imf.org/external/pubs/ft/survey/so/2013/INT062813A.htm
 Schmitz H. and Nadvi K., (1999). "Clustering and Industrialization: Introduction”, World Development, Vol. 27, No.9., pp. 1503-14.
 Szirmai A., 2011, “Manufacturing and Economic Development”, UNU-WIDER Working Paper No. 2011/75, November, https://www.wider.unu.edu/publication/manufacturing-and-economic-development